House prices in North Somerset doubled in last 20 years, says estate agent
- Credit: Parker's
The average house in North Somerset has almost doubled in value in the last 20 years, according to district estate agent.
Andrew Simmonds, director at Parker's in Backwell, says the average home in the district now costs £552,200, outperforming the UK average in a period which saw London record the biggest increases at 247.6%.
He said: “Few people that bought in those first few years of the new millennium could have forecast the massive financial impact that their decision then would have on the rest of their lives.
“Of course, there have been winners and losers, where some North Somerset buyers have made hundreds of thousands of pounds and North Somerset renters have paid out tens of thousands of pounds and yet been unable to buy their first home.
“The average house price in North Somerset has increased by 198.8% to £552,200 in the last 20 years, a profit of £367,420. Across the whole of the UK prices have risen by 187.2%.
“These are average prices and don’t take inflation into consideration. Yet even when adjusted for inflation, North Somerset house prices have still risen by 126.7% in the last 20 years.”
The longer a homeowner has owned their property, the larger the gain when they sell, said Mr Simmonds, who also believes values will continue to rise.
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"It is reassuring to know that it is not just a great place to live but also economically advantageous to live in North Somerset," he said.
"Most of these profits are never seen by homeowners. It has never been money in the bank unless you sell up and downsize or move somewhere cheaper. Instead, these gains are re-invested back into the housing market when they buy their next home.”
Although there is concern at people struggling to get on to the housing ladder, the statistics show that it is cheaper today than in 2007.
At that time, 51% of a first-time buyers' income went on mortgage, whereas today that figure is 37.3%.
“Raising an adequate deposit is the main barrier for first time buyers," he added. "Once they have done that the mortgage is affordable and they are on the ladder.”